​ Global spending on consumer video media services will total $314 billion in 2017 which is an increase of 4.2% from 2016, according to a report by Gartner.Tina Gurnaney | ETTelecom | May 05, 2017, 16:16 IST

NEW DELHI: Global spending on consumer video media services will total $314 billion in 2017 which is an increase of 4.2% from 2016, according to a report by Gartner.

The report said that Pay-TV services is the largest spending segment and will be constituting 90 percent of the total market, totaling $282 million in 2017.

Asia/Pacific, Middle East and North Africa are expected to record the highest growth in end-user spending on consumer video media services.

The report noted that the internet-delivered linear TV services which were launched in India and the Middle East are expected to commence across all emerging regions by 2018.

"We estimate that, incentivized by lower prices, one million households in emerging regions will enter the pay-TV market through an internet TV service by 2020," said Fernando Elizalde, Principal Research Analyst at Gartner. "The dramatic difference in the price of these packages compared with traditional pay-TV packages will also put downward pressure on ARPUs overall."

Also, the transactional video on demand (T-VOD) is offering consumers access a wide variety of content, from either managed pay-TV providers or over-the-top (OTT).

"OTT-VOD sources are changing the landscape," said Derek O'Donnell, senior research analyst at Gartner. "OTT-VOD services are the fastest-growing segment in the VOD landscape and eroding pay-TV providers' share of revenue. OTT-VOD sources began outperforming traditional pay-TV sources in 2016," added Donnell.

The report highlighted that the global consumer spending on subscription-based video on demand (S-VOD) services will total $18.7 billion in 2017 witnessing an increase of 28 percent from 2016.

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